Shark harmonic pattern Absolutely, Amedeo! Here's a detailed and visually engaging breakdown of the **Shark Harmonic Pattern**, including its structure, trading styles, and how it connects Fibonacci ratios with Elliott Wave Theory:
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### 🦈 What Is the Shark Harmonic Pattern?
- **Discovered by**: Scott Carney in 2011
- **Foundation**: Combines **Fibonacci ratios** with **Elliott Wave Theory**
- **Purpose**: Identifies potential **trend reversals** using precise geometric price structures
- **Structure**: Five points labeled **O, X, A, B, C** (not the usual XABCD)
- **Key Feature**: Relies heavily on the **88.6% Fibonacci retracement** and **113% extension**
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### 📐 Pattern Geometry & Ratios
| Leg | Description | Fibonacci Ratio Range |
|------------|--------------------------------------------------|-------------------------------|
| XA | Initial impulse leg | No specific ratio |
| AB | Extension beyond X | 113% to 161.8% of XA |
| BC | Completion leg | 88.6% to 113% of OX |
| | | 161.8% to 224% of AB |
- **Point B** must **exceed point X**, forming an **Extreme Harmonic Impulse Wave**
- **Point C** is the **Potential Reversal Zone (PRZ)**
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### 🛒 Buy Setup (Bullish Shark)
1. **No fixed retracement for A**
2. **B extends 113%–161.8% of XA**
3. **C completes at**:
- 88.6%–113% of OX
- 161.8%–224% of AB
📍 **Entry**: Near point C
📍 **Stop Loss**: Below point C
📍 **Target**: Retracement levels of BC (e.g., 50%, 61.8%), or back to point A/B
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### 📉 Sell Setup (Bearish Shark)
1. **No fixed retracement for A**
2. **B extends 113%–161.8% of XA**
3. **C completes at**:
- 88.6%–113% of OX
- 161.8%–224% of AB
📍 **Entry**: Near point C
📍 **Stop Loss**: Above point C
📍 **Target**: Retracement levels of BC, or back to point A/B
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### 📊 Real Trade Example & Educational Resources are in the comment
